Oregon Department of Administrative Services
Rule Rule 125-055-0016
OFC Status and Annual Reporting


(1) An OFC is required, during the OFC’s fiscal year, to adhere to the direct labor requirement as described in OAR 125-055-0005 (Definitions)(9)(c).
(2) All participating OFCs must submit, on a Department-prescribed form, information from their preceding fiscal year. The Department will evaluate this information to determine compliance with ORS 279.835 (Definitions for ORS 279.835 to 279.855)(5).
(3) The OFC must submit its annual report to the Department within 120 calendar days after the close of the OFC’s fiscal year.
(4) An OFC may request an extension in writing prior to the 120-day deadline. The request must state the reason for the extension and the anticipated date of submission.
(5) The Department will evaluate the annual report for accuracy and compliance with ORS 279.835 (Definitions for ORS 279.835 to 279.855)(5). If the Department determines that the OFC meets the requirements, it will send written notice of qualification to the OFC.
(6) If the Department determines that an OFC is noncompliant with any requirements of ORS 279.835 (Definitions for ORS 279.835 to 279.855)(5), the Department will issue a written notice to the OFC. The written notice will state the reasons the OFC is not compliant and provide potential remedies.
(a) An OFC receiving notice of noncompliance under this subsection must respond to the Department within thirty (30) calendar days of the date of the Department’s notice. The OFC’s response must acknowledge receipt of the notice and describe a corrective action plan.
(b) If the OFC does not respond within thirty (30) calendar days from the date of the written notice, the Department will issue to the OFC written notice of the proposed termination of the OFC’s participation in the Oregon Forward Program. The Department’s written decision under this subsection constitutes a final order under ORS 183.484 (Jurisdiction for review of orders other than contested cases).
(c) The Department may require the OFC, as part of the required cure, to submit to the Department quarterly audit reports concerning the direct labor requirement of ORS 279.835 (Definitions for ORS 279.835 to 279.855)(5). The Department may require the quarterly audits to be conducted and reported by a CPA in accordance with OAR 125-055-0035 (Direct Labor Audits).
(7) If the OFC fails to achieve compliance within the time prescribed by the Department, the OFC will receive a written notice of termination.
(a) The OFC may submit a written appeal to the Department within ten (10) calendar days of the date of the termination notice. The appeal must state the OFC’s grounds for appealing the decision. If the OFC does not appeal the Department’s decision, the termination of the OFC’s participation in the Oregon Forward Program is final.
(b) On appeal, if the Department determines the OFC is then qualified, it will send the OFC notice of qualification. If the Department does not find the OFC qualified, it will provide the OFC a written decision that states the reasons for that determination. The Department’s written decision under this subsection constitutes a final order under ORS 183.484 (Jurisdiction for review of orders other than contested cases).
(8) After any termination of an OFC’s participation in the Oregon Forward Program, the OFC may not enter into or renew any contracts under the Oregon Forward Program. Termination of OFC status also constitutes sufficient grounds for an Agency to terminate any contract procured under the Oregon Forward Program. The Department will post notice of the termination of an OFC’s participation in the Oregon Forward Program on the website or other accessible online posting address administered through the Department. The OFC may re-apply no earlier than one year from the date the termination became final.
(9) Nothing in this rule may be construed as prohibiting the Department and the OFC from resorting to informal dispute resolution measures such as non-binding arbitration or mediation.
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Last accessed
Jun. 8, 2021